Noel Tata can stop Mehli Mistry’s reappointment:Term ending on October 28; big controversy sparks in group after Ratan Tata’s demise

The reappointment of Mehli Mistry, a trustee of Tata Trusts, may be halted. Chairman Noel Tata, Vice Chairman Venu Srinivasan, and Vijay Singh may refuse to approve it. Mehli Mistry’s term is ending on October 28. The decision on his reappointment may be made today, October 27. However, official information regarding this has not yet been released. Mehli Mistry is a trustee in two major trusts Tata Trusts includes Sir Ratan Tata Trust and some other trusts. Mistry has been a trustee of Sir Dorabji Tata Trust (SDTT) and Sir Ratan Tata Trust (SRTT) since 2022. These two trusts hold a 51% stake in Tata Sons, the holding company of Tata Group. The proposal to extend his term was put forth by Tata Trusts CEO Siddharth Sharma on Friday. The Economic Times has published a report on this, citing sources, stating that trustees like Darius Khambata, Pramit Jhaveri, and Jehangir HC Jehangir have already given their consent. Meanwhile, Noel Tata and Venu Srinivasan have sought legal advice. A legal battle could erupt after Ratan Tata’s departure Insiders say that this could lead to a legal battle. Decisions at Tata Trusts have always been made by consensus, but this tradition has started to break down after Ratan Tata’s demise. About a year after Ratan Tata’s demise, the trustees, by majority, removed former Defence Secretary Vijay Singh from the board of Tata Sons. This decision was so significant that the entire nation’s attention turned to the internal strife within Tata Trusts. The government also had to intervene. It was not clearly stated whether the reinstatement of a trustee in case of disagreement could be by majority or if a unanimous decision was necessary. This is completely new for the trusts, as trust decisions never reached voting in the last few decades when Ratan Tata took over the group’s command. While governance in companies is determined in a standard manner by the Companies Act and other applicable laws, trusts operate through a combination of the rules of the Maharashtra Public Trusts Act, the trust deed, and resolutions passed by the trustees from time to time. Mistry had approved Srinivasan’s re-appointment with conditions Last week, Mistry had conditionally approved Srinivasan’s re-appointment as a trustee and vice-chairman of the Sir Dorabji Tata Trust. He had said in an email – If any trustee does not pass the resolution for Venu Srinivasan’s re-appointment or does not bring a similar unanimous resolution for the other trustees when their terms expire, then I will not give my formal approval for Srinivasan’s re-appointment. Mistry can challenge the board’s decision in court The report, citing sources, said that there is an internal debate whether Mistry will withdraw Srinivasan’s approval or challenge the decision not to approve his reinstatement in court. Noel Tata, Srinivasan, and Singh have sought legal advice on this. But a trustee clearly stated – conditional approval cannot stand legally. No resolution can be withdrawn after it is passed. Legally, this is not correct. Meherli Mistry is Cyrus Mistry’s cousin Mistry is the promoter of M Pallonji Group, which has businesses like industrial painting, shipping, dredging, and car dealerships. His company Sterling Motors is a dealer for Tata Motors. Mistry is the cousin of Shapoorji Mistry and his late brother Cyrus Mistry. The Shapoorji Pallonji Group holds an 18.37% stake in Tata Sons.